It is the abbreviation of stock interest. If a listed company withdraws provident fund and public welfare funds, if there is still after-tax profit, then the income can be distributed to shareholders in the form of dividend yield.

I believe investors are no strangers to the term "dividend". It is the abbreviation of stock interest. If a listed company withdraws provident fund and public welfare funds, if there is still after-tax profit, then the income can be distributed to shareholders in the form of dividend yield. Therefore, behind the high dividend yield is the excellent profitability of listed companies. Combined with fundamental indicators such as ROE and ROA, it is deeply loved by value investors.

There are also some funds on the market that track high dividend yield indicators. Can they outperform the market (Shanghai and Shenzhen 300)? With this question in mind, the commander made a statistics. The following table shows that there are 5 high-dividend-rate theme index funds tracking 4 different high-dividend indices, but their historical performance is very average. Huitianfu CSI Hong Kong Stock Connect (LOF) A, Ping An CSI Shanghai-Hong Kong-Shenzhen High Dividend, Minsheng Jiaqian CSI Hong Kong Stock Connect Index A, Galaxy CSI Shanghai-Hong Kong-Shenzhen High Dividend A, Hang Seng Qianhai Hong Kong Stock Connect High Dividend Index has been significantly underperforming the Shanghai-Shenzhen 300 in the past three months, six months and one year, even compared with the Hang Seng Index. What is the reason for

? Everyone knows that the Shanghai and Shenzhen 300 and Hang Seng Index both use the "big market capitalization" factor as the screening criteria for the constituent stocks, while the "high dividend" factor ignores the market capitalization factor. Therefore, when the market obviously tends toward a large-cap style, the high-dividend theme fund may significantly underperform the market, especially the A-share market is particularly "sensitive" to the market value factor. So this leads to some "factors" that look beautiful, but often fail to win the market. This is also an important reason why the commander suggested that at least one fund in his fund portfolio should be based on the market value factor!

So, if the "high dividend" factor is added to the "market value" factor, can it outperform the market? Let's do a backtest together. The figure below shows the 10 Shanghai and Shenzhen 300 components of the stocks with the highest dividend yield in the past 12 months, namely Jinke Co., Ltd. , Bank of China , OCT A, Sinopec, Yutong Bus, Baosteel Co., Ltd., Shuanghui Development, Junzheng Group , Guiyang Bank , and Yangyuan Beverage. The dividend yield in the past 12 months is as high as 5.74%-9.71%. The 10 "high dividend" Shanghai and Shenzhen 300 stocks selected have averaged altitude (according to equal weights) of -0.74%, while the Shanghai and Shenzhen 300 fell -2.41% during the same period; the average increase and fall in the past six months was 12.63%, while the Shanghai and Shenzhen 300 rose by 15.62% during the same period; the average increase and fall in the past year was 8.92%, while the Shanghai and Shenzhen 300 fell -2.63% during the same period. It can be seen that if the "high dividend factor" is combined with the "market value factor", there is still a possibility of a significant outperforming the market.

So what if the "high dividend yield" factor combines with the "broken net" factor? The figure below is the 10 stocks compiled by the commander with a dividend yield of 5% at the end of 2018 and still falling below their net assets to this day, namely Bank of China, Baosteel Co., Ltd., Hengyuan Co., Ltd., Sinopec, Guanghui Logistics, Jianfa Co., Ltd., Nangang Co., Ltd. , Yanzhou Co., Ltd., Xishan Co., Ltd., and Guangming Real Estate. Since most of the companies that break the net are concentrated in cyclical industries such as steel and coal, I personally feel that the certainty of the portfolio returns is not as high as the combination returns of the "high dividend yield + large market value" factor. Interested friends may wish to backtest them themselves.

OK. If you are really interested in high dividend-rate theme funds, it is recommended that you can combine the market value factor to form an exclusive investment portfolio.

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